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Erik Wetterling – Portfolio Management – Should Investors Sell Out Of Losers And Reinvest In More Probable Winners?

Erik Wetterling, Founder and Editor of The Hedgeless Horseman, joins me for a nuanced conversation around managing one’s portfolio positions in various stages of gold, silver, and copper stocks, amidst the volatility in share price reactions and sector sentiment swings.  We start off discussing the long stretches of time for a year or more where many stocks were bouncing along a bottoming price range, that would have given any investors ample opportunities to have accumulated cheap valuations before the big 3-month surge higher from late February through mid-May.   Despite the corrective move we’ve seen for the last 6 weeks, many stocks are still up at far higher levels than where they were trading the whole year before that. 

 

We discuss how difficult it seems to be for most retail investors to actually accumulate bearish periods where stock prices are low, causing them to instead wait until stocks have already moved up 100% or 200% before finally buying in at the next intermediate top, and then becoming jaded on the sector, instead of their own poor accumulation strategy.  We talk about the benefits of averaging into positions during consolidation periods as a value investing approach, and then allowing company management teams the time needed to build value after executing on their work strategy.  

 

Most investors are far too impatient, and want immediate results, and don’t give their winners enough time to compound, which will wash out the inevitable losses in companies that disappoint.  This leads into a discussion about the converse of that, and whether investors should cut their losses on companies unable to execute, and instead potentially redeploy those funds into companies that are cashed up with good work programs and catalysts that are more probable to see value accretion over time. 

 

 

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Click here to visit Erik’s site – The Hedgeless Horseman

Discussion
26 Comments
    Jul 03, 2024 03:15 AM

    Added to ASM @ $.9071

    Reply
    Jul 03, 2024 03:40 AM

    SCZ, bought back in under the 50 day…

    https://schrts.co/AMVrPQPx

    Reply
    Jul 03, 2024 03:49 AM

    exit KOLD if in it…hit swing resistance

    Reply
    Jul 03, 2024 03:35 AM
    Jul 03, 2024 03:18 AM

    Prepare for Impact – Bob Moriarty Warns of Black Swans

    Natural Resource Stocks – Jun 30, 2024

    00:00 Global Financial Instability: The Dollar’s Decline
    01:57 Banking Sector Woes: Japan’s Bold Move
    06:29 Supreme Court and Disinformation: A New Ruling
    09:55 Middle East Tensions: The Risk of Nuclear War
    12:56 Geopolitical Conflicts: Oil and Global Wars
    15:57 Russia-Ukraine Conflict: The Real Story
    24:05 China-Taiwan Tensions: A Potential Flashpoint
    26:33 The Cost of War: Historical Reflections
    33:00 Natural Resources: The Future of Global Competition
    35:41 Conclusion: A Call for Awareness and Action

    https://youtu.be/bdE5bR6b8Ok

    Reply
      BDC
      Jul 03, 2024 03:59 AM

      Bought some today!

      Reply
        Jul 03, 2024 03:43 AM

        Hi BDC. What did you buy today?

        Reply
          BDC
          Jul 04, 2024 04:36 AM

          Excelsior:
          Impact Silver (ISVLF). Small amount.
          Will add if viability continues.

          NatGas may be consolidating:
          https://ibb.co/ggqNHzB
          Holiday bottom?
          BDC

          Reply
    Jul 03, 2024 03:49 AM

    “Ugly” financing likely in Victoria Gold’s future – Adshead-Bell

    Kitco Mining – Jun 28, 2024

    “Ugly” equity financing likely on the way as Victoria Gold grapples with the aftermath of a heap leach failure at its Eagle gold mine in Yukon, Canada, which could be an existential threat to the company, Nicole Adshead-Bell, principal at Cupel Advisory said on Kitco Mining’s Digging Deep show. Adshead-Bell looked at some of the reasons why heap leach pads fail, the impact they have on single asset gold producers and broader impacts on the industry at large.

    “Adshead-Bell also discussed Skeena Resources’ success in financing its Eskay Creek gold project in British Columbia, the positive impacts Argentina’s new fiscal legislation would have on the mining sector, Rio Tinto potentially getting permission to build the Jadar lithium mine in Serbia, Agnico Eagle Mines plans to develop an underground mine at its Detour Lake mine in Ontario, taking it to 1Moz/y of production, and Snowline Gold’s maiden resource at the Valley target at its Rogue project in Yukon.”

    https://youtu.be/VOmrPH84z-Q

    Reply
    Jul 03, 2024 03:40 AM
    Jul 03, 2024 03:46 AM

    The silver miners aren’t doing as well as they should considering silver’s performance today so they should improve very soon if this is the start of a legit move.
    https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=1&dy=0&id=p44012365956&a=1504852587

    Reply
    Jul 03, 2024 03:06 AM

    With the miners painting a possible Head and Shoulders top hedging positions should be considered.
    https://stockcharts.com/h-sc/ui?s=%24XAU&p=D&yr=1&mn=9&dy=19&id=p78542059381&a=1697798108

    Reply
      Jul 03, 2024 03:20 AM

      I keep looking for a ray of hope in the junior resource sector. DT

      Reply
      Jul 03, 2024 03:00 PM

      I have been looking at those inverse head and shoulders on several of my junior charts hoping they don’t trigger. I know, hope is never a good strategy. Conversely, on your chart it looks like there could also be a larger upsloping head and shoulders pattern that might develop given more sideways action?

      Reply
        Jul 04, 2024 04:52 PM

        We all hope for certain things but that doesn’t mean hope is our strategy. I sure hope Brixton turns in some great drill holes for example. You have it right about the juniors’ upsloping H&S (not inverse btw). Downward sloping would of course be more bearish. It might give way to more sideways action or even just upward action. In either event I think any downside action in the seniors would be lessened.
        We’re not out of the woods yet but I expect the 3rd week of the month to deliver a clear direction if we don’t get it sooner. We need power and volume!

        Reply
          Jul 04, 2024 04:32 PM

          Matthew, I would like to get some of that tech money coming into our arena. It may take Nvidia to roll over just enough to scare some of those tech investors over to the precious metal juniors. Haven’t those guys heard of contrarian investing. Even The Bears are smart enough to know when to let go when they encounter a porcupine like Nvidia. DT

          Reply
            Jul 04, 2024 04:08 PM

            Very little institutional support for these juniors.

        Jul 05, 2024 05:05 PM

        Chuckie Cheese doesn’t have a clue! DT

        Reply
    Jul 03, 2024 03:14 PM

    Uranium Sector Update – Is There A Leak In The Cup?

    Excelsior Prosperity w/ Shad Marquitz – (07/03/2024)

    https://excelsiorprosperity.substack.com/p/uranium-sector-update-is-there-a

    Reply
    Jul 04, 2024 04:31 AM

    Nice portfolio pop yesterday! Happy 4th! The shorts are already short…

    Reply

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